Microsoft is offering voluntary exit packages to approximately 60,000 employees, including eligible staff in its Xbox gaming division, as the technology giant continues reshaping its workforce amid substantial investment in artificial intelligence.
Announced on October 26 by Chief People Officer Amy Coleman, the Voluntary Exit Offer (VEO) gives qualifying employees the option to leave Microsoft with financial support and career-transition resources. The program covers eligible workers in participating teams across the United States, Canada, the United Kingdom, and India at internal level 70 or below. The 60,000 figure represents the approximate number of employees eligible to participate, not a target for departures. Microsoft employed approximately 223,000 full-time workers worldwide as of June 30, 2026, meaning the offer could reach more than a quarter of its workforce.
Xbox is one of several Microsoft organizations included in the program. Other participating teams include AI experiences, Copilot, finance, human resources, and Windows + Devices. Participation varies across the company, with some organizations excluded entirely and others participating only in part. The initiative follows significant workforce changes at Microsoft, including cuts announced in July that eliminated approximately 4,800 positions, with substantial reductions in its gaming business. Those changes came as Microsoft restructured parts of Xbox and adjusted its priorities. The new offer is voluntary, and Microsoft has not disclosed how many workers it expects to accept. Eligible employees reportedly have until the first week of December to decide, with departures scheduled for the end of the year. The package is based on Microsoft’s standard severance policies, with benefits varying according to factors including employee level, tenure, and location.
The VEO builds on Microsoft’s earlier Voluntary Retirement Program, which was offered to approximately 8,750 eligible US employees earlier in 2026. Roughly 30% accepted that offer. Unlike the earlier program, which required employees to meet an age-and-service threshold, the new offer has no age or tenure requirement. The timing also coincides with Microsoft’s substantial spending on AI infrastructure. The company has committed significant resources to data centers and AI services, placing its workforce decisions within a broader effort to manage costs while pursuing new technology priorities. Microsoft, however, describes the VEO as a way to give employees more flexibility and help participating organizations adapt to changing business needs.
The offer does not guarantee protection from future layoffs, nor has Microsoft announced how many employees will leave as a result. The company says participation depends on each organization’s priorities, customer commitments, and workforce needs. For Xbox, the inclusion adds another development to a period of substantial organizational change. But until Microsoft reports the program’s results, the number of employees who will actually leave—and the consequences for individual teams—remain uncertain.